Credit ratings are much more influential, and banks charge far, far more than libor.
Last June Barclays agreed to pay a $453 million fine to settle charges over its involvement in the libor scandal.
When Reuters collected libor numbers, it had to trust that Barclays and the other banks were giving good-faith answers.
In short, the crisis of confidence triggered by the libor scandal could soon spread to many parts of the global banking system.
And CEO Dimon has spent weeks trying to distance himself from the libor issue.
One submitter to another: “Just set [libor] where everyone else sets it, we do not want to be standing out.”
You might think that manipulating libor, one of the most important numbers in finance, would be difficult.
They cut out the highest and lowest answers, average the rest, and voilà: libor.